The only way you can keep this car is if you continue to make the payments as originally stipulated by the lender. What a consumer proposal or a bankruptcy does is largely deal with unsecured debt, when you pledged the vehicle originally you gave them the right in advance of any action to seize that property if there is a short fall.
The thing you must consider prior to filing a consumer proposal or a bankruptcy is whether or not you see value in paying almost $27,000 for a vehicle only worth $5,000. Typically what most people choose to do in this type of scenario is to let the finance company seize the vehicle (or at least notify them of your intention to return the vehicle) prior to filing, that way any shortfall will be unsecured and cleared by what ever option under the act you feel fits your situation best.
For details on what you need to do when returning the vehicle, you are best to contact a licensed trustee in advance, that way you can ensure you are fully protected.
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1 Comments:
At 11:26 AM,
Barton Goth, GCO Inc. Bankruptcy Trustees said…
The thing you must consider prior to filing a consumer proposal or a bankruptcy is whether or not you see value in paying almost $27,000 for a vehicle only worth $5,000. Typically what most people choose to do in this type of scenario is to let the finance company seize the vehicle (or at least notify them of your intention to return the vehicle) prior to filing, that way any shortfall will be unsecured and cleared by what ever option under the act you feel fits your situation best.
For details on what you need to do when returning the vehicle, you are best to contact a licensed trustee in
advance, that way you can ensure you are fully protected.
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